Los Angeles daily herald., 1887-09-04
EASTERN NEWS.
Effect of the Baltimore and
Ohio Settlement.
EXCITEMENT ON CHANGE.
POwderly is Going to Europe to
Help the Irish AgitatOrs-
Labor Demonstration.
Associated Press Dispatches to the HERALD

Associated Press Dispatches to the HERALD
New YORK, September 3.-The de-
velopments published this morning
regarding the Baltimore and Ohio ne
gotiations were complete surprise to
operators in the stock market. Prices
moved up with unprecedented rapid
ity and the excitement on the coard
was intense, and brokers bid one-hali
above the previous sales in order to
get stock.
GREAT GAINS.
Ahead of their competitors the prin-
cipal gain was made in Reading, which
at one time showed an advance over
Fridays close of 53ss, and Manhattan
recorded gain of 53s. Toward the
end of the business, excitement sub
sided and an impression began togrow
that the benefit to accrue from the
contract was overestimated.
AN OPERATORS OPINION.
Speaking of the Baltimore and Ohio
negotiations, one of the heaviest oper-
ators in the street said after the close
of the stock market, that there is no
benefit to be gained from the settle
ment except that which might accrue
to the creditors of the Baltimore and
Ohio. They are essentially the same
parties who have taken the preferred
stocks and bonds, and it is simply q
matter of bonding the floating debt.
RECEIVER NOT WANTED.
This may have saved the Baltimore
and Ohio from going into the receivers
hands on account of the floating debt,
but that is all that has been done.
The rates cannot be advanced 100 per
cent, as was the case when the West
Shore settlement was made.
THE TELEGRAPH TROUBLES.
AS far as the telegraph settlement
is concerned, that is farther away now
than ever. The Baltimore and Ohio
is now in strong hands and will be
run in conjunction with the Pennsyl-
vania and Reading for the benefit of
the latter, and if Gould buy the tele-
graph system it will be at the syndi-
Gates terms, and there may be fight
of years before the consolidation will
be made.
DE CASTRO INTERVIEWED.
Vice President DeCastro, OF the
Commercial Cable Company, was
averse to talking on the matter. He
said that Mr.. Mackay was still in San
Francisco and had no intention OF
coming to this city for some time.
Negotiations with Gould had not been
renewed, but that would not affect the
land lines.
THE CABLE COMPANY NOT HURT.
Even though Gould should put the
Baltimore & Ohio system in position
the cable company would not be
weakened but instead materially
strengthened, as it would then be the
only opposition.
A RAISE NOT PROBABLE.
Stories to the effect that Mackey had
signified a willingness to raise the
cable rates to so or 80 cents per word
provided that Gould furnished the
money to pay the rebate guaranteed
by Mackey, he pronounced false. One
reason for holding to the Accent rate
was that if that rate were established
no new competition could be organized
and live, while with the 60-cent rate il
is probable that new cable would be
laid at once and a new war inaugu-
rated.
MoRGAN's OPINION.
J. Pierrepont Morgan said that the
preliminary contract signed yesterday
was the only one necessary, and that
no other would be drawn up.
EFFECT IN ENGLAND.
LONDON, September 3.-The news
of the settlement in the case OF the B..
& o. railway has created a most favor
able impression on Change, and there
was buoyant feeling in the Ameri-
can Department to-day. All Ameri-
can stocks advanced h@116, and a
slightly further improvement was re-
corded at l 80 p. M, when it became
known that 81 900, 900 had been taken
for shipment to New York.
THE RAILROADS BENEFITED.
Among the American bankers here
it is the general opinion that the Bal
timore and Ohio settlement will have
good effect on American trunk lines
and especially on their working east
and west.
POwDERLY's PROGRAMM e.
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